Brands risk image in Bangladesh responses

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Global clothing brands involved in Bangladesh's troubled garment industry responded in different ways to last month's building collapse at Rana Plaza.

Some quickly acknowledged their links to the tragedy and promised compensation. Others denied they authorized work at factories in the building even when their labels were found in the rubble.

The first approach seems to deserve plaudits. The second seems calculated to minimize damage to a brand by maximizing distance from the disaster. Communications professionals say both are public relations strategies and neither may be enough to protect companies from the stain of doing business in Bangladesh.

Such experts say that with several deadly disasters and fires in Bangladesh's $20 billion garment industry in the past six months, possibly the only way retailers and clothing brands can protect their reputations is to visibly and genuinely work to overhaul safety in Bangladesh's garment factories.

Benetton said none of the factories were its authorized suppliers, although Benetton labels were found in the rubble. Spain's Mango said it hadn't bought clothing from Rana Plaza factories but acknowledged it had been in talks with one factory to produce a test batch of clothing.

German clothing company KiK said it was “surprised, shocked and appalled” to learn its T-shirts and tops were found in the rubble. The company said it stopped doing business with the Rana Plaza factories in 2008. It promised an investigation.

Wal-Mart said there was no authorized production of its clothing lines at Rana Plaza, but it was investigating whether there was unapproved subcontracting. Swedish retailer H& M, the single largest customer of Bangladeshi garment factories, said none of its clothes were produced there.

The Walt Disney Co. in March responded to publicity from last year's fire at the Tazreen factory, where its branded clothing was found, by pulling out of Bangladesh production altogether.

Only a few companies, including Britain's Primark and Canada's Loblaw Inc., which owns the Joe Fresh clothing line, have acknowledged production at Rana Plaza and promised compensation. Loblaw's CEO said there were 28 other brands and retailers using the five factories and urged them to end their “deafening silence.”

Meanwhile, German sports gear maker Adidas says it is encouraging workers in factories of its Asian suppliers to anonymously share possible grievances directly with the company via text message.

In the wake of the Rana Plaza collapse, there have been tentative moves to get out the message that companies are addressing the problem. Last week, the Bangladeshi garment association met with representatives of 40 garment buyers including H& M, JC Penney, Gap, Nike, Li & Fung and Tesco.

Others have called for retailers and brands to embrace a union-proposed plan for all retailers to fund factory upgrades and independent inspections that would cover the entire industry in Bangladesh.

That plan has previously been rejected by all but two major brands as too expensive for the corporations and Bangladesh's own responsibility. PVH, the parent company of Calvin Klein and Tommy Hilfiger brands, and German retailer Tchibo were willing to sign up.

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